Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
annuity |
level stream of cash flows for a fixed period of time |
|
|
perpetuity |
level steam of cash flows forever
|
|
|
fv of annuity c= initial amount t =time r= interest rate |
formulae provided for in test |
|
|
growing annuity |
discount rate =R interest rate= g |
|
|
present value for perpetuity |
=c/R |
|
|
nominal interest rate |
int rate expressed in terms of int payment made each period |
|
|
effective annual rate EAR |
interst rate expressed as if it were compunded once per year
|
|
|
annual percentage rate APR |
HARMONIZED int rate that expresses the TC of borrowing or investing as a % int rate |
